(Reuters) -PulteGroup’s first-quarter profit and revenue beat Wall Street estimates on Tuesday, as the company’s incentives helped improve housing demand.
Homebuilders have been employing buyer incentives such as buydowns, discounts and smaller home offerings to help induce demand as high interest rates in the U.S. weigh on affordability, dissuading consumers.
“As the quarter progressed, buyers responded favorably to interest-rate declines, but consumers remain caught between a strong desire for home ownership and the affordability challenges of high selling prices and monthly payments that are stretched,” said CEO Ryan Marshall.
The Atlanta-based company posted quarterly revenue of $3.89 billion, compared with analysts’ average estimate of $3.82 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $2.57 per share in the first quarter, compared with analysts’ average estimate of $2.42 a share.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Pooja Desai)
